Lear Q1 Profit Tops Expectations

reported better-than-expected earnings for the first quarter. The Southfield, Michigan-based company posted a quarterly profit of $147.3 million, or $1.86 per share, versus a year-ago profit of $122 million, or $1.47 per share. Excluding items, the company's profit climbed to $2.28 per share from $1.84 per share. Its revenue rose 3.7 percent to $4.5 billion. However, analysts were expecting a profit of $2.19 per share on revenue of $4.54 billion. Seating segment sales gained 8 percent to $3.5 billion, while sales in its electrical segment dropped 9 percent to $1 billion. Global vehicle production climbed 2 percent year-over-year. Its operating margin widened to 6.5 percent compared to 5.6 percent. During the first quarter, the company's board of Directors lifted share repurchase authorization to $1 billion and raised quarterly cash dividend by 25 percent to $0.25 per share. During the quarter, the company repurchased over 1 million shares of its common stock for a total of $112 million. The average estimate among 10 Estimize users was for earnings of $2.24 per share and revenue of $4.59 billion. "We continued our positive momentum with strong first quarter results," said Matt Simoncini, Lear's president and chief executive officer. "Our balanced strategy of investing in our business, maintaining a strong financial position and returning cash to investors is delivering superior value to both our customers and shareholders. In both of our business segments, we are continuing to win new business and improve our margins." The company expects FY15 sales of $18 billion to $18.5 billion, versus analysts' estimates of $18.6 billion. Lear shares closed at $116.05 yesterday.